Reliant Energy to launch estimated $2.8 billion credit facility

By Sara Rosenberg

New York, Nov. 29 - Reliant Energy Inc. is scheduled to hold a bank meeting Wednesday to launch its proposed credit facility, which is currently expected to be sized around $2.8 billion, according to a market source.

Deutsche Bank, Bank of America, Barclays, Goldman Sachs and Merrill Lynch are the lead banks on the deal, with Deutsche acting as left lead.

The facility will contain a $1.7 billion revolving credit facility and an estimated $1.1 billion term loan B, although the size of the term loan has not yet been finalized, the source said.

Reliant has already received commitments for the revolver in excess of $1.7 billion, according to a company news release.

Proceeds from the credit facility, along with proceeds from senior secured notes and fixed-rate tax-exempt bonds, will be used to refinance existing debt facilities, including a $2.1 billion revolver and a $1.7 billion term loan at the parent company, $300 million of Orion Power Midwest bank debt and $400 million of floating-rate tax-exempt bonds.

Closing on the refinancing is expected to occur before the end of the year.

Reliant is a Houston provider of electricity and energy services to retail and wholesale customers.

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